Archive · 2 Jun 2025
Govt. To Table IBC Amendment Bill in Monsoon Session
The government wants to change some rules about how companies that can't pay their debts are handled.
Right now, if a company is trying to reorganize its debt, it needs permission from the Competition Commission of India (CCI) before it can be approved.
The government is planning to remove the need for the CCI approval.
The Supreme Court recently said that a resolution plan without the CCI's okay was not valid.
The government is also looking at letting creditors take the lead in figuring out how to solve the debt problems, and making the whole process faster, which could help make it easier for businesses.
In simple terms, the changes aim to make it easier and quicker to help struggling businesses.
The government plans to amend the Insolvency and Bankruptcy Code (IBC) during the upcoming monsoon session.
A key amendment is likely to remove the need for prior approval from the Competition Commission of India (CCI) for resolution plans.
This change follows a Supreme Court ruling that deemed a resolution plan unsustainable due to lack of CCI approval.
The government is considering a Creditor-Led Resolution Process (CLRP) to empower financial creditors.
Proposed reforms include a shorter 165-day resolution timeline and extending pre-packaged insolvency to larger corporates.
- Who
- The Central Government.
- What
- Amendments to the Insolvency and Bankruptcy Code (IBC).
- When
- During the upcoming monsoon session of Parliament.
- Where
- India
- Why
- To enhance efficiency and flexibility in the insolvency ecosystem, improve recovery rates, and ease of doing business.
- Proposed Amendment
- Remove prior CCI approval for resolution plans.
- Current Law
- Requires CCI approval before resolution plans.
- CLRP
- Creditor-Led Resolution Process under consideration.
- Proposed Timeline
- 165-day resolution timeline
- Current CIRP Timeline
- 330 days